VSNL has plans to invest more in ICO
Mumbai: Videsh Sanchar Nigam Ltd is toying with the idea of investing additional funds in ICO Global Communications, the world telecom company that is launching a global mobile satellite telephony service, according to The Economic Times. The public sector telecom monopoly intends to do so in order to protect its exclusive distribution rights for ICO’s services in India, as ICO Global has virtually been acquired by the Craig McCaw-Subhash Chandra combine, following the satphone company’s bankruptcy proceedings.

The idea is that unless VSNL increases its stake in ICO, its demands may not be heeded. It had a 7 per cent equity stake in ICO Global before it filed for bankruptcy in a US court. Under the new dispensation, the Craig McCaw-Subhash Chandra combine holds 74 per cent of ICO Global's equity, and dues to bondholders and creditors would be converted into equity. The earlier shareholders have the lowest priority for allotment of shares.
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Lupin’s new R&D unit at Pune
Mumbai: Pharmaceuticals producer Lupin Laboratories is building a new research and development centre at Pune. It will shift its facilities at Mandideep in Madhya Pradesh and Aurangabad in Maharashtra to the new centre. The total cost for the centre will be about Rs 15 crore. The site is close to the National Chemical Laboratories facilities. Lupin may collaborate with NCL in future.
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Ingersoll-Rand exiting compressor business
New Delhi: Ingersoll-Rand (India) is planning to exit the gas compressor business, and is selling its plant at Naroda, Ahmedabad. Dresser-Rand India, a group company of parent Ingersoll-Rand is purchasing the business as a going concern for Rs 65 crore. The company, which has been in the business of gas compressors since the early 1970s, seems to have taken this decision as part of the US parent’s plan to sell its gas compressors business worldwide. It has been facing stiff competition from overseas suppliers with superior technologies and lower prices.

Ingersoll-Rand of the US holds 49 per cent equity in the joint venture Dresser-Rand Company of the US, which is basically into gas compressors.
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Exuba from Ashok Leyland
New Delhi: Ashok Leyland has launched a luxury vehicle, Exuba, priced at Rs 30 lakh. The company will make 500 vehicles of this model at its Hosur factory in Karnataka annually. The Exuba is based on the company’s 1512 cargo vehicle platform and will be powered by a 4-cylinder turbo diesel engine with 112.5 horse power. It will have a capacity to carry seven persons. Exuba will have a personal computer, chemical toilet, adequate storage capacity, a refrigerator, pantry with microwave and audio console. The product is aimed at companies and tourist operators.
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ComputerSkill plans unit for CDs
Mumbai: Computer stationery maker ComputerSkill is setting up a 100 per cent export-oriented unit in Nandoli in Maharashtra with an investment of Rs 89 crore for making 36 million recordable compact discs. The company has roped in the Netherlands-based Toolex Europe as a technical partner and has arranged for funds from Sprint Cass of Singapore and Daisytek of Dubai, which are investing Rs 3 crore each in the equity of the proposed company. These two companies will also lift the entire output.
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Ceat to set up tyre plant in Karnataka
Bangalore: RPG group tyre company Ceat is building a Rs 400-crore plant in Karnataka. The Karnataka government has agreed to provide land for the plant at Dharwad and has assured adequate power and water supply. It will also provide tax concessions.

The group had earlier planned to set up the unit in Tamil Nadu. Ceat has plants at Bhandup, a suburb of Mumbai, at Nashik in Maharashtra and at Ernakulam in Kerala. Some of its well known brands are Endura and Maestro. Meanwhile French tyre major Michelin too has almost finalised its plan to build a tyre unit in Karnataka.
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FIs pick up holding in IEC Software
Mumbai: Domestic and foreign institutions have picked up a 23.37 per cent holding in the Delhi-based IEC Software at a price of Rs 110 per share through the preferential offer of the company recently.

The company has floated the offer to fund its capital expenditure. The main investors are Credit Capital Investment Trust, HB Holding and SBI Mutual Fund. The company has tie-ups with NextGen Solutions and Unified Access Communications in the US, and the London Chamber of Commerce and Industry. It has a presence in the US, UK and Malaysian software markets.
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MRTPC bar on Godrej Ganga
New Delhi: The Monopolies and Restrictive Trade Practices Commission has barred Godrej Soaps from using two slogans -- "Ganga ki dhaar aapke dwar" and "Ganga se snan kar lo" --  in the promotion of its Godrej Ganga soap.
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Kenilworth plans hotel in Goa
Panaji: Kenilworth Hotels is setting up a Rs 35-crore luxury hotel at the Utorda beach in Goa. The company has bought a 14-acre hotel property and is now converting it into a star hotel. The Kenilworth Beach Resort, as the hotel will be called, is planned as a total family getaway and entertainment centre. The Utorda beach already has other star hotels, including the Taj Exotica and a Leela group hotel.
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BT in role of white knight to save Esat
London: British Telecom will play white knight to Ireland’s Esat Telecom Group, which is being targeted by Norway’s state-owned Telenor in a hostile takeover bid. The British company is understood to have earmarked $2.1 billion for  the purpose. British newspapers said British Telecom may offer $95 per American depository receipt of Esat Telecom, topping Telenor’s offer of $85. The company has already sought the European Commission’s approval for the bid. Esat is into telecom services, and is also an Internet service provider.
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Granada plans demerger of leisure business
London: Granada Group, the British media and leisure company, is seriously considering demerging its leisure business once it takes over either Carlton Communications or United News and Media. Granada has made it known that it is in a bid to acquire either of the two British media groups, which are themselves planning a merger of their own. Granada will divide its business into media, and hotels and catering, after the takeover of one of the two companies. Granada has a chain of hotels, including Post House, Le Meridien, Heritage and Travelodge.
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